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Boca Raton Bankruptcy Attorney
Thousands of people file for bankruptcy in Florida every year. It is an opportunity for you to rebuild your finances if you have exhausted all other options. Whether you need to file for Chapter 7, 11, or 13 bankruptcy, a Boca Raton bankruptcy attorney can help you with this legal process. Brian K. McMahon, P.A., has more than 32 years of experience representing clients filing for bankruptcy.
schedule free consultationThe Benefits of Filing for Bankruptcy
There are multiple benefits of filing for bankruptcy, including the following:
Those who file are able to receive a fresh financial start.
You might be allowed to keep a majority of your assets.
All collection tactics by creditors must stop the minute you file for bankruptcy.
You cannot lose your job because your employer discovered that you filed for bankruptcy.
Filing for Chapter 7 Bankruptcy in Boca Raton
Chapter 7 bankruptcy is one of the most common bankruptcy filing options for Boca Raton residents. To qualify for Chapter 7, you should meet the following requirements:
- You did not file for Chapter 7 in the last eight years
- You did not file for Chapter 13 in the last six years
- If you did file for Chapter 7 or Chapter 13 and were denied, you must wait for 181 days before filing for Chapter 7
- A credit counseling course must have been completed in the 180 days prior to filing for Chapter 7
- You are required to pass a means test, showing that you have the income available to make monthly payments
Debt That Can be Discharged in Chapter 7
In a Chapter 7 bankruptcy filing, you are permitted to have the following types of debt discharged:
- Credit card balances
- Medical debt
- Back rent
- Utility bills
- Some government overpayment benefits
- Personal loans
You will not be able to discharge student loans, court fees, alimony, child support payments, personal injury debt, and other types of debt.
Filing for Chapter 11 Bankruptcy in Florida
If you own a business, Chapter 11 bankruptcy is the option you want to choose with the assistance of a Boca Raton bankruptcy attorney. Chapter 11 is beneficial for businesses because they can remain in operation. If fraud is present, a representative will be appointed to run the business while the bankruptcy is finalized. The business is allowed to propose a reorganization plan, and if it is deemed fair, the court will approve it. The company’s creditors will have the chance to propose a reorganization plan if the company’s plan is not approved by the court.
Businesses that file for Chapter 11 typically experience the following:
- The renegotiating of debt
- The reorganization of the business
- The downsizing of the business to reduce its expenses for operating
- Liquidating the assets of the business to repay debts
Call A Trusted Bankruptcy Lawyer In Boca Raton, FL
Chapter 13 Bankruptcy
If you have a lot of debt that is insurmountable, Chapter 13 bankruptcy will be the best option. Brian K. McMahon, P.A., has more than 32 years of experience representing clients when filing for Chapter 13 bankruptcy. Most people who choose this bankruptcy option will be able to hold onto their cars, homes, and other large assets, especially if they are working while the process occurs.
Your disposable income will be used to repay the debt you owe to creditors, and it must be done within three to five years of when the filing is approved. During this timeframe, you will not be permitted to purchase a new home, a new car, go on vacation, or make any other large purchase. If you do make a large purchase, it can void your bankruptcy plan and require you to repay your creditors immediately.
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Do I Qualify for Chapter 13 Bankruptcy?
To qualify for Chapter 13 in Florida, you must meet the following requirements:
You have a job that provides a steady income.
You have not filed for Chapter 13 bankruptcy in the previous two years.
You have not filed for Chapter 7 bankruptcy in the previous four years.
You are current on all of your tax filings.
Your secured debt cannot total more than $1,257,859.
Your unsecured debt cannot total more than $419,275.
Why You Need a Boca Raton Bankruptcy Attorney
While Florida does not require you to have a bankruptcy attorney work with you during the filing process, it is in your best interest to have one represent you. An attorney has intimate knowledge of the law, understands the requirements for each chapter, can recommend which chapter is best for your situation, and will make sure that you do not miss any deadlines associated with the filing process.
How Long Do Bankruptcy Filings Last on Your Credit Report?
If you file for Chapter 7 bankruptcy and it is approved, it will remain on your credit report for no more than 10 years. Once the 10 years pass, the bankruptcy will automatically be removed from your credit report.
If you are approved for Chapter 13 bankruptcy, it will remain on your credit report for up to seven years from the date you filed. Once the seven years have passed, it too will be removed from your credit report.
Once you have gone through bankruptcy, it is important to rebuild your credit. You can do this by taking the following actions:
- Paying all bills by the due date or sooner (utility, medical, credit, loans, etc.)
- Set a budget and stick to it
- Improve your rate of credit utilization (this rate is the percentage of credit you have available and the total amount of credit balances you hold)
When you have questions about filing for bankruptcy, speak to a Boca Raton bankruptcy attorney.
schedule free consultationCall a Boca Raton Bankruptcy Attorney Today
When you are ready to file for bankruptcy, turn to the experienced, compassionate, and empathic Brian K. McMahon, P.A. Mr. McMahon is a trusted Boca Raton bankruptcy attorney who will work with you throughout the entire process. Clients in West Palm Beach, Port St. Lucie, Boca Raton, and throughout all South Florida should call Mr. McMahon today to schedule a consultation.